1. The decision of a housing authority to
terminate a person’s housing assistance is a final decision for the purposes of
judicial review. A person aggrieved by such a final decision of the housing
authority is entitled to judicial review of the decision in the manner provided
in NRS 233B.130 to 233B.150, inclusive, for the review of
decisions of administrative agencies in contested cases.

2. If a person who seeks judicial review
of a final decision of a housing authority pursuant to subsection 1 retains
possession of the premises during the pendency of the action, the person shall
pay the rent and comply with all other provisions set forth in the underlying
contract for possession of the premises. If the person fails to pay such rent
or comply with the other provisions of the contract, the landlord may initiate
proceedings for eviction. If the person is evicted, the housing authority is
not required to issue a new voucher for housing assistance to the person unless
and until the person prevails in the action for judicial review.

3. As used in this section:

(a) “Housing assistance” means any financial
assistance that a person receives under the Housing Choice Voucher Program
pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. §
1437f, and any regulations adopted pursuant thereto, or pursuant to any
successor program.

(b) “Housing authority” means a housing authority
created pursuant to this chapter and includes, without limitation, the Nevada
Rural Housing Authority.

1. The policy of this State, to provide
decent, safe and sanitary housing for persons of low income, is being thwarted
by the frequent occurrence in public housing of activities concerning the
unlawful possession, distribution and use of controlled substances.

2. The provision of public housing has
never been intended to help subsidize criminal behavior.

3. These unlawful activities, conducted by
an intimidating minority of the residents of public housing, are causing our
public housing to become increasingly infested with violence, degeneracy and
squalor, which imperils the physical and mental health of the peaceful
residents therein.

4. Persons residing with the active
participants in these unlawful activities commonly share in the proceeds
thereof or have the ability to prevent or interfere significantly in the
conduct of the activities.

5. It will promote the public health,
safety and welfare of the residents of this State to require housing
authorities to evict from public housing both the persons who actively
participate in unlawful activities relating to the possession, distribution or
use of controlled substances, and the persons who reside with them.

1. “Housing authority” means a housing
authority created pursuant to this chapter. The term includes a regional
authority formed pursuant to NRS 315.7805.

2. “Landlord” means a person who owns or
manages any premises that he or she rents or leases to a tenant pursuant to a
contract with a housing authority.

3. “Premises” means a particular apartment
or other residential unit of public housing occupied by a tenant, or a
residential unit that is occupied by a tenant pursuant to a federally assisted
housing program administered by a housing authority.

4. “Public housing” means the residential
accommodations operated by a housing authority or a landlord.

NRS 315.031Conditions upon which tenant required to vacate public housing.A tenant in public housing, and every person
who resides with the tenant, is required to vacate public housing upon:

1. The conviction of the tenant, or any
person residing with the tenant, of a violation, while a resident of public
housing, of any state or federal law regulating the possession, distribution or
use of a controlled substance; or

2. The determination by a juvenile court
that any minor residing with the tenant has committed, while a resident of
public housing:

(a) A second violation of any state or federal
law regulating the possession, distribution or use of a controlled substance;
or

(b) A single violation of any state or federal
law regulating the possession, distribution or use of a controlled substance,
if:

(1) There is a program of rehabilitation
in the community which is available to the minor; and

(2) The minor fails to enroll immediately
in the program, or enrolls in the program and fails or refuses to comply with
any term, condition or requirement thereof.

NRS 315.041Notice of termination of tenancy; contents of notice; affidavit
filed by tenant; affidavit filed by housing authority or landlord;
determination by justice of the peace.

1. Except as otherwise required by federal
law or regulation, or as a condition to the receipt of federal money, a housing
authority or a landlord shall, immediately upon learning of facts indicating
that a tenant is required pursuant to NRS 315.031
to vacate public housing, serve upon the tenant a written notice which:

(a) States that the tenancy is terminated at noon
of the fifth full day following the day of service, and that the tenant must
surrender the premises at or before that time;

(b) Sets forth the facts upon which the tenant is
required to vacate the premises pursuant to NRS 315.031;

(c) Advises the tenant of the tenant’s right to
contest the matter by filing, within 5 days, an affidavit with the justice of
the peace denying the occurrence of the conditions set forth in NRS 315.031; and

(d) Contains any other matter required by federal
law or regulation regarding the eviction of the tenant from those premises, or
as a condition to the receipt of federal money.

Ê If the
tenant timely files the affidavit and provides the housing authority or the
landlord with a copy of the affidavit, stamped as filed with the justice of the
peace, the housing authority or the landlord shall not refuse the tenant, or
any person who resides with the tenant, access to the premises.

2. Upon noncompliance with the notice:

(a) The housing authority or the landlord shall
apply by affidavit to the justice of the peace of the township where the
premises are located. If it appears to the justice of the peace that the
conditions set forth in NRS 315.031 have occurred
and that the tenant is required by that section to vacate the premises, the
justice of the peace shall issue an order directing the sheriff or constable of
the county to remove the tenant and any other person on the premises within 24
hours after receipt of the order. The affidavit required by this paragraph must
contain:

(1) The date when, and the facts upon
which, the tenant became required to vacate the premises.

(2) The date when the written notice was
given, a copy of the notice and a statement that the notice was served as
provided in NRS 315.051.

(b) Except when the tenant has timely filed the
affidavit described in subsection 1 and provides the housing authority or the
landlord with a copy of the affidavit, stamped as filed with the justice of the
peace, the housing authority or the landlord may, in a peaceable manner, refuse
the tenant, and any person who resides with the tenant, access to the premises.

3. Upon the filing by the tenant of the
affidavit authorized by subsection 1 and the filing by the housing authority or
the landlord of the affidavit required by subsection 2, the justice of the
peace shall hold a hearing, after service of notice of the hearing upon the
parties, to determine the truthfulness and sufficiency of any affidavit or
notice provided for in this section. If the justice of the peace determines
that the conditions set forth in NRS 315.031 have
occurred and that the tenant is required by that section to vacate the premises,
the justice of the peace shall issue a summary order for removal of the tenant
and any other person on the premises, or an order refusing the tenant, and any
person who resides with the tenant, admittance to the premises. If the justice
of the peace determines that the conditions set forth in NRS
315.031 have not occurred and that the tenant is not required by that
section to vacate the premises, the justice of the peace shall refuse to grant
any relief.

1. The notices required by NRS 315.041 must be served in any manner required by
federal law or regulation concerning the eviction of the tenant from those
premises, or as a condition to the receipt of federal money, or, in the absence
of such a requirement, the notice may be served:

(a) By delivering a copy to the tenant
personally, in the presence of a witness; or

(b) If the tenant cannot be found with reasonable
diligence, by leaving a copy with a person of suitable age and discretion at
the premises or the tenant’s usual place of business, mailing a copy to the
tenant at the premises or the tenant’s usual place of business, and posting a copy
in a conspicuous place on the premises.

2. Before an order to remove a tenant is
issued pursuant to NRS 315.041, a housing authority
or a landlord must file with the court a proof of service of any notice
required by that section. This proof must consist of a statement, signed by the
tenant and a witness, acknowledging that the tenant received the notice on a
specified date, or:

(a) The endorsement of a sheriff, constable or
other process server stating the time and manner of service; and

(b) If service is accomplished in a manner which
requires that a copy of the notice be mailed to the tenant, a certificate of
mailing issued by the United States Postal Service.

NRS 315.061Action for damages not precluded; appeal of decision of justice
of the peace.

1. The issuance of a summary order for
removal of a tenant of public housing does not preclude an action by the
tenant, or any person who resides with the tenant, for any damages or other
relief to which he or she is entitled.

2. Either party may, within 10 days,
appeal the decision of the justice of the peace to the district court for that
county. An appeal by the tenant does not stay the order issued by the justice
of the peace.

NRS 315.071Return of evicted tenant to public housing.If a person required to vacate public housing
pursuant to NRS 315.031:

1. Committed the actual violation or
violations for which the person is required to vacate public housing, a housing
authority or a landlord, except as otherwise required by federal law or
regulation, or as a condition to the receipt of federal money, shall not allow
the person to again reside in public housing.

2. Did not commit the actual violation or
violations for which the person is required to vacate public housing, a housing
authority or a landlord may again allow that person to reside in public housing
after he or she has vacated public housing for a reasonable period.

1. In the case of an authority of a city
or town, “area of operation” shall include such city or town and the area
within 5 miles of the territorial boundaries thereof; but the area of operation
of an authority of any city or town shall not include any area which lies
within the territorial boundaries of some other city or town as herein defined,
unless a resolution shall have been adopted by the governing body of such other
city or town (and by any authority which shall have been theretofore
established and authorized to exercise its powers in such city or town)
declaring that there is a need for such authority to exercise its powers within
that city or town.

2. In the case of an authority of a
county, “area of operation” shall include all of the county for which it is
created; but a county authority shall not undertake any housing project or
projects within the boundaries of any city or town, as herein defined, unless a
resolution shall have been adopted by the governing body of such city or town
(and by any authority which shall have been theretofore established and
authorized to exercise its powers in such city or town) declaring that there is
a need for the county authority to exercise its powers within such city or
town.

3. In the case of a regional authority,
“area of operation” shall include:

(a) All of the territory within the geographic
scope of the regional authority, as referred to in paragraph (c) of subsection
2 of NRS 315.7805; and

(b) Any other territory regarding which the
regional authority and another authority agree to exercise joint power or
control.

NRS 315.170“Authority” defined.“Authority”
means any of the public corporations created or authorized to be created by NRS 315.140 to 315.7813,
inclusive, and any housing authority established and operating prior to July 1,
1975, under the provisions of the Housing Authorities Law of 1943 or the
Housing Law of 1951. The term includes a regional authority.

NRS 315.200“Clerk” defined.“Clerk”
means the clerk of the city or town or the clerk of the county, as the case may
be, or the officer charged with the duties customarily imposed on such clerk.

[Part 2:253:1947; A 1951, 8]

NRS 315.210“Federal Government” defined.“Federal
Government” includes the United States of America or any agency or
instrumentality of the United States of America.

[Part 2:253:1947; A 1951, 8]

NRS 315.220“Governing body” defined.“Governing
body” means city council, board of trustees, board of county commissioners, or
other legislative body of the city, town or county.

[Part 2:253:1947; A 1951, 8]

NRS 315.225“Housing Authorities Law of 1943” defined.“Housing Authorities Law of 1943” means former
NRS 315.010 to 315.130, inclusive (chapter
20, Statutes of Nevada 1943, as amended).

(Added to NRS by 1975, 15)

NRS 315.226“Housing Law of 1951” defined.“Housing
Law of 1951” means former NRS
315.800 to 315.950,
inclusive (chapter 286, Statutes of Nevada 1951).

(Added to NRS by 1975, 16)

NRS 315.230“Housing project” defined.

1. “Housing project” means any work or
undertaking:

(a) To demolish, clear or remove buildings from
any area acquired by the authority; or

(b) To provide decent, safe and sanitary urban or
rural dwellings, apartments or other living accommodations for persons of low
income. Such work or undertaking may include buildings, land, equipment,
facilities and other real or personal property for necessary, convenient or
desirable appurtenances, streets, sewers, water service, utilities, parks, site
preparation, landscaping, administrative, health, recreational, welfare or other
purposes; or

(c) To accomplish a combination of the foregoing.

2. “Housing project” also may be applied
to the planning of the buildings and improvements, the acquisition of property,
the demolition of existing structures, the construction, reconstruction,
alteration and repair of the improvements and all other work in connection
therewith.

3. The term includes the acquisition or
development of mobile home parks and facilities, the leasing or rental of
mobile home lots in the park or the purchase, leasing or rental of mobile
homes.

NRS 315.240“Mayor” defined.“Mayor”
means the mayor of the city or the officer thereof charged with the duties
customarily imposed on the mayor or executive head of the city.

[Part 2:253:1947; A 1951, 8]

NRS 315.250“Obligee of the authority” and “obligee” defined.“Obligee of the authority” or “obligee” shall
include any bondholder, agents or trustees for any bondholders, or lessor
demising to the authority property used in connection with a housing project,
or any assignee or assignees of such lessor’s interest or any part thereof, and
the Federal Government when it is a party to any contract with the authority.

[Part 2:253:1947; A 1951, 8]

NRS 315.260“Persons of low income” defined.“Persons
of low income” means persons or families who lack the amount of income which is
necessary (as determined by the housing authority) to enable them, without
financial assistance, to live in decent, safe and sanitary dwellings, without
overcrowding.

[Part 2:253:1947; A 1951, 8]

NRS 315.270“Real property” defined.“Real
property” includes all lands, improvements and fixtures thereon, and every
estate, interest and right therein.

NRS 315.280“State public body” defined.“State
public body” means any city, town, county, municipal corporation, commission,
district, authority, other subdivision or public body of the State.

[Part 2:253:1947; A 1951, 8]

NRS 315.290“Town” defined.“Town”
means any town for which the board of county commissioners acts as a town
board.

[Part 2:253:1947; A 1951, 8]

NRS 315.300“Veteran” and “serviceman or servicewoman” defined.“Veteran” or “serviceman or servicewoman”
means a person who has served in the Armed Forces of the United States at any
time:

1. On or after April 6, 1917, and prior to
November 11, 1918;

2. On or after September 16, 1940, and
prior to July 26, 1947;

3. On or after June 27, 1950, and prior to
January 31, 1955; and

4. On or after August 5, 1964, and prior
to such date thereafter as shall be determined by Presidential proclamation or
concurrent resolution of the Congress as the end of the Vietnam era,

Ê and, in the
case of a veteran, has been discharged or released therefrom under conditions
other than dishonorable, or in the case of a serviceman or servicewoman, is
presently in the Armed Forces of the United States.

1. All real property of an authority shall
be exempt from levy and sale by virtue of an execution, and no execution or
other judicial process shall issue against the same, nor shall any judgment
against an authority be a charge or lien upon its real property.

2. The provisions of this section shall
not apply to or limit the right of obligees to foreclose or otherwise enforce
any mortgage or other security of an authority or the right of obligees to
pursue any remedies for the enforcement of any pledge or lien given by an
authority on its rents, fees or revenues.

1. In each city, town or county of the
State there is hereby created a public body corporate and politic to be known
as the housing authority of the city, town or county; but such authority shall
not transact any business or exercise its powers hereunder until or unless the
governing body of the city, town or county, as the case may be, by proper
resolution shall declare at any time thereafter that there is need for an
authority to function in such city, town or county.

2. Such housing authority is hereby
created a public body corporate for municipal purposes and shall be a municipal
corporation.

[Part 3:253:1947; 1943 NCL § 5470.03]

NRS 315.330Factual findings required.The
governing body shall adopt a resolution declaring that there is need for an
authority in the city, town or county, as the case may be, if it shall find:

1. That dwelling accommodations are
occupied in such city, town or county, which are unsafe or insanitary; or

2. That there is a shortage of safe or
sanitary dwelling accommodations in such city, town or county available to
veterans and other persons of low income at rentals they can afford.

[Part 3:253:1947; 1943 NCL § 5470.03]

NRS 315.340Determination of unsafe or insanitary conditions: Considerations.In determining, as provided in NRS 315.330, whether dwelling accommodations are
unsafe or insanitary, a governing body may take into consideration:

1. The physical condition of the dwelling
accommodations.

2. The degree of overcrowding.

3. The percentage of land coverage.

4. The light, air, space and access
available to the occupants of such dwelling accommodations.

5. The size and arrangement of the rooms.

6. The adequacy of sanitary facilities and
water supply.

7. The extent to which conditions exist in
such buildings which endanger life or property by fire or other causes.

1. In any suit, action or proceeding
involving the validity or enforcement of or relating to any contract of the
authority, an authority shall be conclusively deemed to have become established
and authorized to transact business and exercise its powers hereunder upon
proof of the adoption of the resolution or resolutions herein prescribed
declaring the need for the authority.

2. Each such resolution or resolutions
shall be deemed sufficient if it declares that there is such need for an
authority and finds in substantially the terms provided in NRS 315.330 (no further detail being necessary) that
the conditions therein enumerated exist.

3. A copy of such resolution duly
certified by the clerk shall be admissible in evidence in any suit, action or
proceeding.

[Part 4:253:1947; 1943 NCL § 5470.04]

NRS 315.360Continuation of housing authorities organized under prior laws.Any housing authority created and existing
prior to July 1, 1975, pursuant to the Housing Authorities Law of 1943 or the
Housing Law of 1951 continues in existence for the purposes of and has all of
the powers granted by NRS 315.140 to 315.7813, inclusive.

1. Chapter 16, Statutes of Nevada 1975,
shall not impair or affect any act done, offense committed or right accruing,
accrued or acquired, or liability, penalty, forfeiture or punishment incurred
prior to July 1, 1975, but the same may be enjoyed, asserted, enforced,
prosecuted or inflicted, as fully and to the same extent as if it had not been
passed.

2. Chapter 16, Statutes of Nevada 1975,
shall not affect the corporate existence of any authority established or
operating under the Housing Authorities Law of 1943 or the Housing Law of 1951
prior to July 1, 1975.

3. The passage of chapter 16, Statutes of
Nevada 1975, shall not repeal or in any way affect or modify:

(a) Any law authorizing the issuance of any
outstanding bonds and other securities by any authority established or
operating prior to July 1, 1975, under the Housing Authorities Law of 1943 or
the Housing Law of 1951.

(b) Any other contract of any such authority.

(c) Any law pursuant to which there have been
levied by or on behalf of any such authority and there have not been paid in
full, including without limitation the principal and any interest and penalties,
any rents, fees and charges pertaining to the facilities or services, or both
facilities and services, provided by any such authority.

(d) The running of the statutes of limitations in
force on July 1, 1975.

4. All incomplete proceedings had and
taken by any such authority, under any law repealed by chapter 16, Statutes of
Nevada 1975, preliminary to and in the acquisition or improvement of any
housing project or the issuance of any interim or temporary bond, or any
definitive bond, which proceedings are in substantial compliance with the
provisions of NRS 315.140 to 315.7813, inclusive, may, at the option of the commissioners
of the authority, be completed under the provisions of NRS
315.140 to 315.7813, inclusive, the same as if
such incomplete proceedings had been had and taken pursuant to such provisions.

5. The passage of chapter 16, Statutes of
Nevada 1975, shall not repeal or in any way affect or modify the power of the
commissioners of any authority established or operating under the Housing
Authorities Law of 1943 or the Housing Law of 1951 prior to July 1, 1975,
concerning the borrowing of money or the acceptance of any grant of public or
private money, which power was exercised prior to July 1, 1975.

6. All bonds, notes, contracts, agreements
and obligations of authorities relating to financing or undertaking (including
cooperating with or acting as agent of the Federal Government in) the
development or administration of any project to assure the availability of safe
and sanitary dwellings for persons engaged in national defense activities,
which bonds, notes, contracts, agreements and obligations were issued or
entered into prior to July 1, 1951, are validated and declared legal in all
respects, notwithstanding any defect or irregularity therein or any want of
statutory authority.

1. Upon the adoption of a resolution
declaring the need for an authority, the chief executive of the city or the
governing body of the town or county, as the case may be, shall thereupon
appoint five persons to serve as commissioners of the authority. Three of the commissioners
who are first appointed pursuant to this section must be designated to serve
for terms of 1, 2 and 3 years, respectively, from the date of their
appointment, and two must be designated to serve for terms of 4 years from the
date of their appointment, but thereafter commissioners must be appointed for a
term of office of 4 years.

2. The first commissioner appointed after
the authority has provided assistance to at least five persons must be a
current recipient of assistance from the authority who was selected from a list
of at least five eligible nominees submitted for this purpose by an
organization which represents tenants of housing projects. If no such
organization exists, the commissioner must be selected from a list of nominees
submitted for this purpose from persons who currently receive assistance from
the authority. Thereafter, at least one commissioner must be such a recipient
who was nominated and appointed in the same manner. If during his or her term
the commissioner ceases to be a recipient of assistance, he or she must be
replaced in the manner set forth in this subsection by a person who is a
recipient of assistance.

3. Nothing in this section affects the
terms of office of commissioners appointed to an authority created before October
1, 1995. The appointing authority shall appoint to the term next expiring a
commissioner who was nominated and appointed in the same manner as is set forth
in subsection 2. Thereafter, at least one commissioner must be such a recipient
who was nominated and appointed in the same manner. If during his or her term
the commissioner ceases to be a recipient of assistance, he or she must be
replaced in the manner set forth in subsection 2 by a person who is a recipient
of assistance.

1. An authority shall select a chair and a
vice chair from its commissioners.

2. For the purpose of managing a regional
authority, the commissioners of the regional authority shall initially select
an executive director by way of a competitive, open and public process.
Thereafter, the selection of an executive director must be made as determined
by the commissioners of the regional authority to be in the best interests of
the authority.

1. A commissioner or employee of the
authority shall not voluntarily acquire any interest, direct or indirect,
except as a residential tenant, in any housing project or in any property
included or planned to be included in any housing project, or in any contract
or proposed contract in connection with any housing project. Where the
acquisition is not voluntary, the commissioner or employee shall immediately
disclose the interest in writing to the authority and the disclosure must be
entered upon the minutes of the authority. Upon disclosure the commissioner or
employee shall not participate in any action by the authority involving the
housing project, property or contract. If any commissioner or employee of the
authority previously owned or controlled an interest, direct or indirect, in
any housing project or in any property included or planned to be included in
any housing project, or in any contract or proposed contract in connection with
any housing project, he or she shall immediately disclose the interest in
writing to the authority and the disclosure must be entered upon the minutes of
the authority. Upon disclosure the commissioner or employee shall not
participate in any action by the authority involving the housing project,
property or contract.

2. Any violation of this section
constitutes misconduct in office.

3. This section is not applicable to the
acquisition of any interest in notes or bonds of the authority issued in
connection with any housing project or the execution of agreements by financial
institutions for the deposit or handling of money in connection with a housing
project or to act as trustee under any trust indenture.

1. For inefficiency or neglect of duty or
misconduct in office, a commissioner of an authority may be removed by the
mayor, or in the case of an authority for a town or county, by its governing
body.

2. A commissioner shall be removed only
after a hearing and after he or she shall have been given a copy of the charges
at least 10 days prior to such hearing and had an opportunity to be heard in
person or by counsel.

3. In the event of the removal of any
commissioner, a record of the proceedings, together with the charges and
findings thereon, shall be filed in the office of the clerk.

[6:253:1947; 1943 NCL § 5470.06]

NRS 315.420Nature and functions; power to effectuate purposes.An authority shall constitute a public body
corporate and politic, exercising public and essential governmental functions,
and having all the powers necessary or convenient to carry out and effectuate
the purposes and provisions of NRS 315.140 to 315.7813, inclusive, (but not the power to levy and
collect taxes or special assessments).

4. Make and execute contracts and other
instruments necessary or convenient to the exercise of its powers.

5. Make, and from time to time amend and
repeal bylaws, rules and regulations to carry into effect the powers and
purposes of the authority.

[Part 7:253:1947; A 1951, 11]

NRS 315.435Area of another authority.Except
as otherwise provided in NRS 315.9835, a housing
authority shall not operate in any area in which an authority already
established is operating without the consent by resolution of the authority
already operating therein. For the purposes of this section, the formation of a
regional authority pursuant to NRS 315.7805 shall
be deemed to constitute consent by resolution of the authority of any
participating local governmental entity.

NRS 315.440Powers concerning housing projects.Within
its area of operation, an authority may:

1. Prepare, carry out and operate housing
projects and provide for the construction, reconstruction, improvement,
extension, alteration, or repair of any such project or any part thereof.

2. Determine where there is unsafe,
insanitary or overcrowded housing.

3. Make studies and recommendations
relating to the problem of eliminating unsafe, insanitary or overcrowded
housing.

4. Cooperate with the city, the county,
the State, or any political subdivision thereof in action taken in connection
with such problems.

5. If it is a regional authority, work
cooperatively with the relevant local jurisdictions concerning new developments
or housing projects, or both. The relevant local jurisdictions with which a
regional authority works cooperatively concerning new developments or housing
projects, or both, shall provide to the regional authority such support and
assistance as the regional authority may require.

1. Arrange or contract for the furnishing
by any person or agency, public or private, of services, privileges, works or
facilities for, or in connection with, its housing projects.

2. Notwithstanding anything to the
contrary contained in NRS 315.140 to 315.7813, inclusive, or any other provisions of law,
agree to any conditions attached to federal financial assistance relating to
the determination of prevailing salaries or wages or payment of not less than
prevailing salaries or wages or compliance with labor standards, in the
development or administration of projects.

3. Include in any contract let in
connection with a housing project, stipulations requiring that the contractor
and any subcontractors comply with requirements as to minimum salaries or wages
and maximum hours of labor, and comply with any conditions attached to the
financial aid of such project.

4. Acquire by the exercise of the power of
eminent domain any real property pursuant to the provisions of the laws of
Nevada and rules of court relative to the right of eminent domain, civil
actions, new trials and appeals, which laws and rules shall be applicable to
and constitute the rules of practice in condemnation proceedings by housing
authorities.

5. Sell, lease, exchange, transfer,
assign, pledge or dispose of any real or personal property or any interest
therein.

6. Insure or provide for the insurance of
any real or personal property or operations of the authority against any risks
or hazards.

1. Invest any funds held in reserves or
sinking funds, or any funds not required for immediate disbursement, in:

(a) Obligations issued by the United States
Postal Service or the Federal National Mortgage Association, whether or not the
payment of principal and interest thereon is guaranteed by the Federal
Government.

(b) Bonds or other obligations issued by a
redevelopment agency created pursuant to chapter
279 of NRS or a legislative body that has elected to exercise the powers
granted an agency pursuant to that chapter.

(2) Are rated by a nationally recognized
rating service as “AAA” or its equivalent; and

(3) Invest only in securities issued or
guaranteed as to payment of principal and interest by the Federal Government,
or its agencies or instrumentalities, or in repurchase agreements that are
fully collateralized by such securities.

2. Redeem its bonds at the redemption
price established therein or purchase its bonds at less than such redemption
price. All bonds so redeemed or purchased must be cancelled.

NRS 315.480Exercise of powers granted in NRS 315.420 to 315.470,
inclusive.An authority may
exercise all or any part or combination of powers granted in NRS 315.420 to 315.470,
inclusive.

[Part 7:253:1947; A 1951, 11]

NRS 315.490Acquisition, operation or disposition of property by public
bodies: Law applicable.No
provision of law with respect to the acquisition, operation or disposition of
property by other public bodies shall be applicable to an authority unless the
Legislature shall specifically so state.

[Part 7:253:1947; A 1951, 11]

NRS 315.500Rentals.It is
declared to be the policy of this state that each authority shall manage and
operate its housing projects in an efficient manner so as to enable it to fix
the rentals or payments for dwelling accommodations at low rates consistent
with its providing decent, safe and sanitary dwelling accommodations for
persons of low income, and that no authority shall construct or operate any
housing project for profit, or as a source of revenue to the city, town or the
county. To this end an authority shall fix the rentals or payments for
dwellings in its housing projects at no higher rates than it shall find to be
necessary in order to produce revenues which, together with all other available
moneys, revenues, income and receipts of the authority from whatever sources
derived, will be sufficient:

1. To pay, as the same become due, the
principal and interest on the bonds of the authority.

2. To create and maintain such reserves as
may be required to assure the payment of principal and interest as it becomes
due on its bonds.

3. To meet the cost of, and to provide
for, maintaining and operating the housing projects (including necessary
reserves therefor and the cost of any insurance) and the administrative
expenses of the authority.

4. To make such payments in lieu of taxes
as it determines are consistent with the maintenance of the low-rent character
of the housing projects.

[8:253:1947; 1943 NCL § 5470.08]

NRS 315.510Tenant selection: Preferences.In
the operation or management of housing projects, an authority shall at all
times observe the following duties with respect to rentals and tenant
admissions:

1. It may rent or lease the dwelling
accommodations therein only to persons of low income and, as among low-income
persons who are eligible applicants for occupancy in dwellings of given sizes
and at specified rents, shall extend the following preferences in the selection
of tenants:

(a) First: To families who are to be displaced by
any low-rent housing project or by any public slum clearance or redevelopment
project initiated after January 1, 1947, or who were so displaced within 3
years before making application on authority for admission to any low-rent
housing. Among such families, first preference must be given to families of
veterans with a disability whose disability has been determined by the
Department of Veterans Affairs to be service connected, second preference must
be given to families of deceased veterans and servicemen or servicewomen whose
death has been determined by the Department of Veterans Affairs to be service
connected, and third preference must be given to families of other veterans and
servicemen or servicewomen.

(b) Second: To families of other veterans and
servicemen or servicewomen. Among such families, first preference must be given
to families of veterans with a disability whose disability has been determined
by the Department of Veterans Affairs to be service connected, and second
preference must be given to families of deceased veterans and servicemen or
servicewomen whose death has been determined by the Department of Veterans
Affairs to be service connected.

2. It may rent or lease to a tenant
dwelling accommodations consisting of a number of rooms, but no greater number,
which it deems necessary to provide safe and sanitary accommodations to the
proposed occupants thereof, without overcrowding.

3. An authority shall not accept any
person or persons as tenants in any housing project if the person or persons
who occupy the dwelling accommodations have, at the time of admission, an
aggregate annual net income, less an exemption of $200 for each minor member of
the family other than the head of the family and his or her spouse, in excess
of seven times the annual rental of the quarters to be furnished such person or
persons, but an authority may agree to conditions as to tenant eligibility or
preference required by the Federal Government pursuant to federal law in any
contract for financial assistance with the authority. In computing the rental
for this purpose of admitting tenants, there must be included in the rental the
average annual cost, as determined by the authority, to occupants of heat,
water, electricity, gas, cooking fuel and other necessary services or
facilities, whether or not the charge for such services and facilities is
included in the rental.

NRS 315.520Remedies of authority’s obligee: Effect of NRS
315.500 and 315.510.Nothing
contained in NRS 315.500 and 315.510
shall be construed as limiting the power of an authority to vest in an obligee
the right, in the event of a default by the authority, to take possession
thereof or cause the appointment of a receiver thereof, free from all the
restrictions imposed by such sections.

[Part 9:253:1947; A 1951, 12]

NRS 315.530Cooperation between authorities.Any
authority or authorities may join or cooperate with another in the exercise,
either jointly or otherwise, of any of their powers for the purpose of
financing, including the issuance of bonds, notes or other obligations and the
giving of security therefor, planning, undertaking, owning, constructing,
operating or contracting with respect to a housing project or projects located
within the area within which one or more of such authorities are authorized to
exercise their powers. For such purpose any cooperating authority may, by
resolution, prescribe and authorize any authority so joining and cooperating
with it to act in its behalf in the exercise of any of such powers, or the
cooperating authorities may, by resolution, appoint from among the
commissioners of such authorities an executive committee with full powers to
act on behalf of such authorities with respect to any of their powers as
prescribed by resolution of such authority.

[10:253:1947; 1943 NCL § 5470.10]

NRS 315.540Payments in lieu of taxes.An
authority shall agree to make such payments in lieu of taxes to the city, town,
county, and the State, or any political subdivision, as it finds consistent
with the maintenance of the low-rent character of housing projects or the
achievement of the purposes of NRS 315.140 to 315.7813, inclusive.

1. For the purpose of aiding and
cooperating in the planning, undertaking, construction or operation of housing
projects of housing authorities located within the area in which it is authorized
to act, any state public body may, upon such terms, with or without
consideration, as it may determine:

(a) Dedicate, sell, convey or lease any of its
interest in any property, or grant easements, licenses, or any other rights or
privileges therein to a housing authority.

(b) Cause parks, playgrounds, recreational,
community, educational, water, sewer, or drainage facilities, or any other
works which it is otherwise empowered to undertake, to be furnished adjacent to
or in connection with such projects.

(d) Cause services to be furnished to the housing
authority of the character which such state public body is otherwise empowered
to furnish.

(e) Enter into agreements with respect to the
exercise by such state public body of its powers relating to the repair,
improvement, condemnation, closing or demolition of unsafe, insanitary or unfit
buildings.

(f) Employ (notwithstanding the provisions of any
other law) any funds belonging to or within the control of such state public
body, including funds derived from the sale or furnishing of property or
facilities to a housing authority, in the purchase of the bonds or other
obligations of a housing authority; and, as the holder of such bonds or other
obligation, exercise the rights connected therewith.

(g) Do any and all things, necessary or
convenient, to aid and cooperate in the planning, undertaking, construction or
operation of such housing projects.

(h) Incur the entire expense of any public
improvements made by such state public body in exercising the powers granted in
NRS 315.140 to 315.7813,
inclusive.

(i) Enter into agreements (which may extend over
any period, notwithstanding any provision or rule of law to the contrary) with
a housing authority respecting action to be taken by such state public body
pursuant to any of the powers granted by NRS 315.140
to 315.7813, inclusive. If at any time title to,
or possession of, any project is held by any public body or governmental agency
authorized by law to engage in the development or administration of low-rent
housing or slum clearance projects, including any agency or instrumentality of
the United States of America, the provisions of such agreements shall inure to
the benefit of and may be enforced by such public body or governmental agency.

2. Any sale, conveyance, lease or
agreement provided for in this section may be made by a state public body
without appraisal, public notice, advertisement or public bidding,
notwithstanding any other laws to the contrary.

1. In addition to the powers conferred
upon an authority by other provisions of NRS 315.140
to 315.7813, inclusive, an authority may:

(a) Borrow money or accept contributions, grants
or other financial assistance from the Federal Government for or in aid of any
housing project within its area of operation.

(b) Take over or lease or manage any housing
project or undertaking constructed or owned by the Federal Government, and to
these ends, to comply with such conditions and enter into such mortgages, trust
indentures, leases or agreements as may be necessary, convenient or desirable.

2. In any contract with the Federal
Government for annual contributions to an authority, the authority may obligate
itself (which obligation shall be specifically enforceable and shall not
constitute a mortgage, notwithstanding any other laws) to convey to the Federal
Government possession of or title to the project to which such contract
relates, upon the occurrence of a substantial default (as defined in such
contract) with respect to the covenants or conditions to which the authority is
subject. Such contract may further provide that in case of such conveyance, the
Federal Government may complete, operate, manage, lease, convey or otherwise
deal with the project in accordance with the terms of such contract; provided,
that the contract requires that, as soon as practicable after the Federal
Government is satisfied that all defaults with respect to the project have been
cured and that the project will thereafter be operated in accordance with the
terms of the contract, the Federal Government shall reconvey to the authority
the project as then constituted.

3. It is the purpose and intent of NRS 315.140 to 315.7813,
inclusive, to authorize every authority to do any and all things necessary or
desirable to secure the financial aid or cooperation of the Federal Government
in the undertaking, construction, maintenance or operation of any housing
project by such authority.

NRS 315.570Housing in rural areas.Any
city, town, county or regional housing authority which has rural areas under
its jurisdiction may undertake the provision of housing for families of low
income in such rural areas, and may comply with any conditions not inconsistent
with the purposes of this housing authorities law required by the Federal
Government pursuant to federal law in any contract for financial assistance
with the authority concerning such undertakings.

[20a:253:1947; added 1951, 15]

NRS 315.580Housing for veterans and servicemen or servicewomen.

1. In addition to other powers conferred
upon an authority by NRS 315.140 to 315.7813, inclusive, an authority may acquire
property and construct housing projects thereon for the purpose of leasing
dwellings to servicemen or servicewomen, veterans and their families, and the
families of deceased persons who served in the Armed Forces, at rentals,
excluding utilities, of not to exceed $50 per month, during the existence of
the acute shortage of housing available to such persons as determined by
applicable law or as may be provided for in any contract for financial assistance
with the Federal Government.

2. In exercising the powers provided in
this section an authority shall not be subject to the limitations provided in NRS 315.500 or 315.510
during the period of acute housing shortage for veterans and servicemen or
servicewomen, and their families and the families of deceased persons who
served in the Armed Forces, of moderate income.

NRS 315.590Lease of government war housing projects by authority.An authority, in addition to its other powers,
is authorized to cooperate with and lease from the Federal Government war
housing projects constructed by the Federal Government, for the purpose of
providing housing for veterans and servicemen or servicewomen and their
families, and families of deceased persons who served in the Armed Forces, and
persons engaged in war activities; provided, that such war housing projects
shall not be subject to the limitations provided in NRS
315.500 or 315.510.

1. To issue bonds from time to time, in
its discretion, for any of its corporate purposes.

2. To issue refunding bonds for the
purpose of paying or retiring bonds previously issued by it.

[Part 12:253:1947; 1943 NCL § 5470.12]

NRS 315.610Types of bonds; additional security.

1. An authority may issue such types of
bonds as it may determine, including (without limiting the generality of the
foregoing) bonds on which the principal and interest are payable:

(a) Exclusively from the income and revenues of
the housing project financed with the proceeds of such bonds.

(b) Exclusively from the income and revenues of
certain designated housing projects whether or not they are financed in whole
or in part with the proceeds of such bonds.

(c) From its revenues generally.

2. Any of the bonds may be additionally
secured by a pledge of any grant or contributions from the Federal Government
or other source, or a pledge of any income or revenues of the authority, or a
mortgage of any housing project, projects or other property of the authority.

[Part 12:253:1947; 1943 NCL § 5470.12]

NRS 315.620Liability on bonds; debt limitations.Neither
the commissioners of an authority nor any person executing the bonds is liable
personally on the bonds by reason of the issuance thereof. The bonds and other
obligations of an authority are not, and must state on their face that they are
not, a debt of the city, the county, the State or any other political
subdivision thereof, and neither the city, the county, the State nor any other
political subdivision thereof is liable thereon, nor in any event are the bonds
or obligations payable out of any funds or properties other than those of the authority.
The bonds do not constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction.

NRS 315.650Discontinuance in office: Negotiability.If any of the commissioners or officers of the
authority whose signatures appear on any bonds or coupons cease to be such
commissioners or officers before the delivery of such bonds, such signatures
shall, nevertheless, be valid and sufficient for all purposes, the same as if
such commissioners or officers had remained in office until such delivery. Any
provision of any law to the contrary notwithstanding, any bonds issued pursuant
to NRS 315.140 to 315.7813,
inclusive, are fully negotiable.

NRS 315.660Validity; conclusive presumptions.In
any suit, action or proceeding involving the validity or enforceability of any
bond of an authority or the security therefor, any such bond reciting in
substance that it has been issued by the authority to aid in financing a
housing project, as defined in NRS 315.230, is
conclusively deemed to have been issued for such purpose and such project is
conclusively deemed to have been planned, located, and carried out in
accordance with the purposes and provisions of NRS
315.140 to 315.7813, inclusive.

NRS 315.670Authorized provisions: Bonds; trust indentures; mortgages.In connection with the issuance of bonds or
the incurring of obligations under leases and in order to secure the payment of
such bonds or obligations, an authority, in addition to its other powers, has
the powers conferred by NRS 315.680 to 315.740, inclusive.

[Part 14:253:1947; 1943 NCL § 5470.14]

NRS 315.680Pledges and mortgages.An
authority may:

1. Pledge all or any part of its gross or
net rents, fees or revenues to which its right then exists or may thereafter
come into existence.

2. Mortgage all or any part of its real or
personal property, then owned or thereafter acquired.

[Part 14:253:1947; 1943 NCL § 5470.14]

NRS 315.690Limitation of further indebtedness; bond proceeds; lost and
destroyed bonds; extension of bond and interest payment; redemption.An authority may:

1. Covenant against pledging all or any
part of its rents, fees and revenues, or against mortgaging all or any part of
its real or personal property, to which its right or title then exists or may
thereafter come into existence, or against permitting or suffering any lien on
such revenues or property.

2. Covenant with respect to its right to
sell, lease or otherwise dispose of any housing project or any part thereof.

3. Covenant as to what other, or
additional debts or obligations may be incurred by it.

4. Covenant as to the bonds to be issued
and as to the issuance of such bonds in escrow and otherwise, and as to the use
and disposition of the proceeds thereof.

5. Provide for the replacement of lost,
destroyed or mutilated bonds.

6. Covenant against extending the time for
the payment of its bonds or interest thereon.

7. Covenant for the redemption of the
bonds, and to provide the terms and conditions thereof.

[Part 14:253:1947; 1943 NCL § 5470.14]

NRS 315.700Rental income; special funds.An
authority may:

1. Covenant (subject to the limitations
contained in NRS 315.140 to 315.7813,
inclusive) as to the rents and fees to be charged in the operation of a housing
project or projects, the amount to be raised each year or other period of time
by rents, fees and other revenues, and as to the use and disposition to be made
thereof.

2. Create or authorize the creation of
special funds for moneys to be held for construction or operating costs, debt
service, reserves or other purposes, and covenant as to the use and disposition
of the moneys held in such funds.

NRS 315.710Procedure relating to bondholders’ contracts.An authority may prescribe the procedure, if
any, by which the terms of any contract with bondholders may be amended or
abrogated, the amount of bonds the holders of which must consent thereto, and
the manner in which such consent may be given.

1. Covenant as to the use, maintenance and
replacement of any or all of its real or personal property, the insurance to be
carried thereon, and the use and disposition of insurance moneys.

2. Covenant as to the rights, liabilities,
powers and duties arising upon the breach by it of any covenant, condition or
obligation.

3. Covenant and prescribe as to events of
default and terms and conditions upon which any or all of its bonds or
obligations shall become or may be declared due before maturity, and as to the
terms and conditions upon which such declaration and its consequences may be
waived.

[Part 14:253:1947; 1943 NCL § 5470.14]

NRS 315.725Program to jointly self-insure and purchase insurance or
reinsurance.

1. Except as otherwise provided in
subsection 3, any two or more affordable housing entities may establish and
participate in a program to jointly self-insure and jointly purchase insurance
or reinsurance for coverage under a plan of:

(a) Casualty insurance, as that term is defined
in NRS 681A.020, except for workers’
compensation and employer’s liability coverage;

(b) Marine and transportation insurance, as that
term is defined in NRS 681A.050;

(e) Insurance for any combination of the kinds of
insurance listed in paragraphs (a) to (d), inclusive.

2. A program established pursuant to
subsection 1 must be administered by an entity which is organized as a
nonprofit corporation, limited-liability company, partnership or trust, whether
organized under the laws of this State or another state or operating in another
state. A majority of the board of directors or other governing body of the
entity administering the program must be affiliated with one or more of the
affordable housing entities participating in the program.

3. This section does not apply to an
affordable housing entity that individually self-insures or participates in a
risk pooling arrangement, including a risk retention group or a risk purchasing
group, with respect to the kinds of insurance set forth in subsection 1.

4. Except as otherwise provided in this
section or by specific statute:

(a) A program established pursuant to subsection
1 and the entity administering the program:

(1) Shall be deemed not to be providing
coverage which constitutes insurance; and

(2) Are not subject to the provisions of
title 57 of NRS; and

(b) The entity administering a program
established pursuant to subsection 1 shall be deemed not to be engaging in the
transaction of insurance.

5. The entity administering a program established
pursuant to subsection 1 shall provide any affordable housing entity that seeks
to participate in the program with a written notice, in 10-point type or
larger, before the affordable housing entity begins participating in the
program, that the program is not regulated by the Commissioner and that, if the
program or the entity administering the program is found insolvent, a claim
under the program is not covered by the Nevada Insurance Guaranty Association
Act.

6. The entity administering a program
established pursuant to subsection 1 shall submit to the Commissioner:

(a) Within 105 days after the end of the
program’s fiscal year:

(1) An annual financial statement for the
program audited by a certified public accountant; and

(2) An annual actuarial analysis for the
program prepared by an actuary who meets the qualification standards for
issuing statements of actuarial opinion in the United States established by the
American Academy of Actuaries or its successor organization; and

(b) Within 30 days after:

(1) Filing with any other regulatory body,
a claims audit report relating to the entity or the program, a copy of the
claims audit report filed with the other regulatory body;

(2) Issuance by any other regulatory body
of a report of examination relating to the entity or the program, a copy of the
report of examination issued by the other regulatory body;

(3) The effective date of a plan of
financing, management and operation for the entity or the program or any
material change in such a plan, a copy of the plan or material change; and

(4) The effective date of any material
change in the scope of regulation of the entity or the program by any other
state in which the entity operates, a statement of the material change.

7. The Commissioner may order an
examination of a program established pursuant to subsection 1 or the entity
administering the program based upon any credible evidence that the program or
entity is in violation of this section or is operating or being operated while
in an unsafe financial condition. Such an examination must be administered in
accordance with NRS 679B.230 to 679B.300, inclusive, and any regulations
adopted pursuant thereto.

8. If the Commissioner determines that a
program established pursuant to subsection 1 or the entity administering the
program is in violation of this section or is operating or being operated while
in an unsafe financial condition, the Commissioner may issue and serve upon the
entity administering the program an order to cease and desist from the
violation or from administering or in any way operating the program.

9. The Commissioner may hold a hearing,
without a request by any party, to determine whether a program established
pursuant to subsection 1 or the entity administering the program is in
violation of this section or is operating or being operated while in an unsafe
financial condition. A person aggrieved by any act, threatened act or failure of
the Commissioner to act, or by any report, rule, regulation or order of the
Commissioner relating to this section, may request a hearing. Any hearing held
pursuant to this subsection must be held in accordance with NRS 679B.310 to 679B.370, inclusive, and any regulations
adopted pursuant thereto.

10. The provisions of this section must be
liberally construed to grant affordable housing entities maximum flexibility to
jointly self-insure and jointly purchase insurance or reinsurance to the extent
that a program established pursuant to subsection 1 is being administered and
otherwise operated in a safe financial condition and in a sound manner.

11. Each entity administering a program
established pursuant to subsection 1 shall, on or before January 15 of each
odd-numbered year, submit a report to the Director of the Legislative Counsel
Bureau for transmittal to the Legislature. The report must include, without
limitation, a list of the affordable housing entities participating in the
program and any other information the Director deems relevant.

12. As used in this section:

(a) “Affordable housing” means housing projects
in which some of the dwelling units may be purchased or rented, with or without
government assistance, on a basis that is affordable to persons of low income.

(b) “Affordable housing entity” means:

(1) A housing authority created under the
laws of this State or another jurisdiction and any agency or instrumentality of
a housing authority, including, but not limited to, a legal entity created to
enter into an agreement which complies with NRS
277.055;

(2) A nonprofit corporation organized
under the laws of this State or another state that is engaged in providing
affordable housing; or

(3) A general or limited partnership or
limited-liability company which is engaged in providing affordable housing and
which is affiliated with a housing authority described in subparagraph (1) or a
nonprofit corporation described in subparagraph (2) if the housing authority or
nonprofit corporation:

(I) Has, or has the right to
acquire, a financial or ownership interest in the partnership or
limited-liability company;

(II) Has the power to direct the
management or policies of the partnership or limited-liability company; or

(III) Has entered into a contract to
lease, manage or operate the affordable housing owned by the partnership or
limited-liability company.

1. Vest in any obligees of the authority
the right to enforce the payment of the bonds or any covenants securing or
relating to the bonds.

2. Vest in an obligee or obligees holding
a specified amount in bonds the right, in the event of a default by the
authority, to take possession of and use, operate and manage any housing
project or any part thereof or any funds connected therewith, and to collect
the rents and revenues arising therefrom, and to dispose of such moneys in
accordance with the agreement of the authority with such obligees.

3. Provide for the powers and duties of
such obligees and limit the liabilities thereof.

4. Provide the terms and conditions upon
which such obligees may enforce any covenant or rights securing or relating to
the bonds.

[Part 14:253:1947; 1943 NCL § 5470.14]

NRS 315.740Exercise of enumerated powers.An
authority may exercise all or any part or combination of the powers granted in NRS 315.680 to 315.730,
inclusive, and make covenants other than and in addition to the covenants
expressly authorized in such sections. An authority may do any and all such
acts and things as may be necessary or convenient or desirable in order to
secure its bonds, or, in the absolute discretion of the authority, as will tend
to make the bonds more marketable, notwithstanding that such covenants, acts or
things may not be enumerated herein.

[Part 14:253:1947; 1943 NCL § 5470.14]

NRS 315.750Submission to and certification of bonds by Attorney General.An authority may submit to the Attorney
General of the State any bonds to be issued pursuant to NRS
315.140 to 315.7813, inclusive, after all
proceedings for the issuance of such bonds have been taken. Upon the submission
of such proceedings to the Attorney General, the Attorney General shall examine
into and pass upon the validity of such bonds and the regularity of all
proceedings in connection therewith. If the proceedings conform to the
provisions of NRS 315.140 to 315.7813, inclusive, and are otherwise regular in
form, and if such bonds when delivered and paid for will constitute binding and
legal obligations of the authority enforceable according to the terms thereof,
the Attorney General shall certify in substance upon the back of each of the
bonds that it is issued in accordance with the Constitution and laws of the
State of Nevada.

1. The State and all public officers,
municipal corporations, political subdivisions, and public bodies, all banks,
bankers, trust companies, savings banks and institutions, investment companies,
insurance companies, insurance associations and other persons carrying on a
banking or insurance business, and all executors, administrators, guardians,
trustees, and other fiduciaries may legally invest any sinking funds, moneys or
other funds belonging to them or within their control in any bonds or other
obligations issued by a housing authority created by or pursuant to NRS 315.140 to 315.7813,
inclusive, or issued by a public housing authority or agency in the United
States, when such bonds or other obligations are secured by a pledge of annual
contributions to be paid by the United States Government or any agency thereof,
and such bonds and other obligations are authorized security for all public
deposits, and are fully negotiable in this state; it being the purpose of the
Housing Authorities Law of 1947 to authorize any of the foregoing to use any
funds owned or controlled by them, including (but not limited to) sinking,
insurance, investment, retirement, compensation, pension, and trust funds, and
funds held on deposit, for the purchase of any such bonds or other obligations;
but nothing contained in NRS 315.140 to 315.7813, inclusive, is construed as relieving any
person, firm or corporation from any duty of exercising reasonable care in
selecting securities.

2. The provisions of the Housing
Authorities Law of 1947 apply notwithstanding any restrictions on investments
contained in other laws.

NRS 315.770Remedies of authority’s obligee.An
obligee of an authority has the right in addition to all other rights which may
be conferred on such obligee, subject only to any contractual restrictions
binding upon such obligee:

1. By mandamus, suit, action, or
proceeding at law or in equity to compel the authority or its officers, agents
or employees to perform each and every term, provision and covenant contained
in any contract of the authority with or for the benefit of such obligee, and
to require the carrying out of any or all such covenants and agreements of the
authority and the fulfillment of all duties imposed upon the authority by the
Housing Authorities Law of 1947.

2. By suit, action or proceeding in
equity, to enjoin any acts or things which may be unlawful, or the violation of
any of the rights of such obligee of the authority.

NRS 315.780Additional remedies conferrable by authority on obligee.By its resolution, trust indenture, mortgage,
lease or other contract, an authority may confer upon any obligee holding or
representing a specified amount in bonds, the right (in addition to all rights
that may otherwise be conferred), upon the happening of an event of default as
defined in such resolution or instrument, by suit, action or proceeding in any
court of competent jurisdiction:

1. To cause possession of any housing
project or any part thereof to be surrendered to any such obligee.

2. To obtain the appointment of a receiver
of any housing project of the authority or any part thereof and of the rents
and profits therefrom. If the receiver be appointed, he or she may enter and
take possession of such project or any part thereof and operate and maintain
it, collect and receive all fees, rents, revenues or other charges thereafter
arising therefrom, and shall keep such moneys in a separate account or accounts
and apply the same in accordance with the obligations of the authority as the
court shall direct.

3. To require the authority to account as
if it were the trustees of an express trust.

1. In a county whose population is 700,000
or more, any two or more authorities may form a regional authority.

2. To form a regional authority as
described in subsection 1, the governing body of the county and the governing
body of each city and town located within the county that desires to
participate in the regional authority shall adopt a resolution setting forth:

(a) The intent to regionalize some or all of
their powers;

(b) A reference to the development of a plan for
transitioning to a regional authority;

(c) The geographic scope of the regional
authority; and

(d) Such other matters as the governing bodies
determine to be necessary or advisable.

3. If the formation of a regional
authority pursuant to this section involves fiscal matters, the ownership of
real property or the consolidation of functions, the governing bodies who form
the regional authority shall, in consultation with the United States Department
of Housing and Urban Development, resolve such matters by written contract,
agreement or other arrangement entered into by those governing bodies.

NRS 315.7807Dissolution of individual authorities.Upon
the adoption of a resolution pursuant to NRS 315.7805
forming a regional authority, the dissolution of any individual authorities of
the local governments who form the regional authority must be begun.

1. Upon the adoption of a resolution
pursuant to NRS 315.7805 forming a regional
authority, 13 persons must be appointed to serve as commissioners of the
authority as follows:

(a) The governing body of the county shall
appoint two persons to serve as commissioners of the authority;

(b) The governing body of the largest city in the
county that participates in the regional authority shall appoint three persons
to serve as commissioners of the authority;

(c) The governing body of the second largest city
in the county that participates in the regional authority shall appoint two
persons to serve as commissioners of the authority;

(d) The governing body of the third largest city
in the county that participates in the regional authority shall appoint two
persons to serve as commissioners of the authority; and

(e) Four commissioners who serve on behalf of
tenants must be selected as described in subsection 3, including:

(1) One commissioner who serves on behalf
of tenants of the county, appointed by the governing body of the county;

(2) One commissioner who serves on behalf
of tenants of the largest city in the county that participates in the regional
authority, appointed by the governing body of that city;

(3) One commissioner who serves on behalf
of tenants of the second largest city in the county that participates in the
regional authority, appointed by the governing body of that city; and

(4) One commissioner who serves on behalf
of tenants of the third largest city in the county that participates in the
regional authority, appointed by the governing body of that city.

Ê None of the
persons appointed to serve as commissioners of the authority may be elected
officials of any governmental entity.

2. Each commissioner must be appointed for
a term of office of 4 years.

3. Each commissioner who serves on behalf
of tenants must be a current recipient of assistance from the authority who
resides in the county or in the city from which he or she is appointed, as applicable,
and who is selected from a list of at least five eligible nominees submitted
for this purpose by an organization which represents tenants of housing
projects in the county or city, as applicable. If no such organization exists,
each such commissioner must be selected from a list of nominees submitted for
this purpose from persons who currently receive assistance from the authority
and who reside in the county or in the city for which the list of nominees is
prepared, as applicable. Thereafter, at least four commissioners must be such
recipients who were nominated and appointed in the same manner. If, during his
or her term, any such commissioner ceases to be a recipient of assistance, the
commissioner must be replaced in the manner set forth in this subsection by a
person who is a recipient of assistance.

4. In making the appointments described in
paragraphs (a) to (d), inclusive, of subsection 1, the relevant local
governments shall seek recommendations for appointment from a diverse
background of interests with a view toward:

(a) Balancing gender and ethnicity; and

(b) Soliciting appointees who have experience in
fields such as, without limitation:

NRS 315.7813Reservation or nomination of land from Bureau of Land Management
prohibited; exception.A regional
authority may not request a reservation or nomination of land from the Bureau
of Land Management unless the governing body of the jurisdiction within which
the applicable land of the Bureau is located adopts a resolution of approval.

1. It is the policy of this State to
promote the health, welfare and safety of its residents and to develop more
desirable neighborhoods and alleviate poverty in the counties, cities and towns
of the State by making provision for decent, safe and sanitary housing
facilities for persons of low and moderate income.

2. It is hereby found and declared:

(a) That there is a shortage of safe and sanitary
dwelling accommodations in the rural areas of the State which are available to
persons of low and moderate income, particularly senior citizens of low and
moderate income, at rentals or prices they can afford;

(b) That the establishment and operation of a
sufficient number of new local housing authorities to undertake housing
projects on an individual basis in such counties and the cities and towns
therein is not feasible at the present time due to geographic and economic
circumstances;

(c) That the shortage of low-rent housing
facilities in such counties can be partially remedied through state action by
the establishment of a state housing authority having the power to undertake
housing projects and make mortgage loans for residential housing; and

(d) That it is appropriate for such a state
housing authority to issue obligations for the purpose of undertaking housing
projects and providing mortgage loans for residential housing and to perform
any other function authorized by NRS 315.961 to 315.99874, inclusive.

NRS 315.962Definitions.As
used in NRS 315.961 to 315.99874,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 315.963 to 315.976,
inclusive, have the meanings ascribed to them in those sections.

NRS 315.965“Bonds” defined.“Bonds”
means any bonds, notes, interim certificates, debentures or other obligations
issued by the Authority pursuant to the provisions of NRS
315.961 to 315.99874, inclusive.

NRS 315.967“Executive Director” defined.“Executive
Director” means the Executive Director of the State Authority.

(Added to NRS by 1973, 615)

NRS 315.968“Federal Government” defined.“Federal
Government” includes the United States of America or any agency or
instrumentality of the United States of America.

(Added to NRS by 1973, 616)

NRS 315.969“Housing project” defined.

1. “Housing project” means any work or
undertaking:

(a) To demolish, clear or remove buildings from
any area acquired by the Authority;

(b) To provide decent, safe and sanitary rural
dwellings, apartments or other living accommodations for persons of low and
moderate income. Such work or undertaking may include buildings, land,
equipment, facilities and other real or personal property for necessary,
convenient or desirable appurtenances, streets, sewers, water service,
utilities, parks, site preparation, landscaping, administrative, health,
recreational, welfare or other purposes; or

(c) To accomplish a combination of the foregoing.

2. “Housing project” also may be applied
to the planning of the buildings and improvements, the acquisition or leasing
of property, the demolition of existing structures, the construction,
reconstruction, alteration and repair of the improvements and all other work in
connection therewith.

3. The term includes the acquisition or
development of mobile home parks and facilities, the leasing or rental of
mobile home lots in the park, or the purchase, leasing or rental of mobile
homes.

NRS 315.972“Obligee” defined.“Obligee”
includes any bondholder, agent or trustee for any bondholder, or lessor
demising to the Authority property used in connection with a housing project, or
any assignee or assignees of such lessor’s interest or any part thereof, and
the Federal Government when it is a party to any contract with the Authority.

(Added to NRS by 1973, 616)

NRS 315.973“Persons of low and moderate income” defined.“Persons of low and moderate income” means
individuals or families who lack the amount of income which is necessary, as
determined by the Authority pursuant to the provisions of NRS 315.9845, to enable them, without financial
assistance, to live in decent, safe and sanitary dwellings, without
overcrowding.

1. The Nevada Rural Housing Authority,
consisting of five commissioners, is hereby created.

2. The commissioners must be appointed as
follows:

(a) Two commissioners must be appointed by the
Nevada League of Cities.

(b) Two commissioners must be appointed by the
Nevada Association of Counties.

(c) One commissioner must be appointed jointly by
the Nevada League of Cities and the Nevada Association of Counties. This
commissioner must be a current recipient of assistance from the Authority and
must be selected from a list of at least five eligible nominees submitted for
this purpose by an organization which represents tenants of housing projects
operated by the Authority. If no such organization exists, the commissioner
must be selected from a list of nominees submitted for this purpose from
persons who currently receive assistance from the Authority. If during his or
her term the commissioner ceases to be a recipient of assistance, the
commissioner may continue to serve as a commissioner for the remainder of the
unexpired term for which he or she was appointed if he or she resides within
the area of operation of the Authority.

3. After the initial terms, the term of
office of a commissioner is 4 years or until his or her successor takes office.

4. A majority of the commissioners
constitutes a quorum, and a vote of the majority is necessary to carry any
question.

5. If either of the appointing entities
listed in subsection 2 ceases to exist, the pertinent appointments required by
subsection 2 must be made by the successor in interest of that entity or, if
there is no successor in interest, by the other appointing entity.

NRS 315.978Certificate of appointment or reappointment of commissioner:
Filing.A certificate of the
appointment or reappointment of any commissioner shall be filed in the Office
of the Secretary of State and in the Office of the Authority, and such
certificate is conclusive evidence of the appointment of such commissioner.

1. As soon as possible after their
appointment, the commissioners shall organize for the transaction of business
by choosing a Chair and Vice Chair and by adopting bylaws and rules and
regulations suitable to the purpose of organizing the Authority and conducting
the business thereof.

2. The commissioners shall appoint an
Executive Director and such other officers and employees as the Authority may
require for the performance of its duties. The commissioners shall prescribe
the duties of each officer and employee, fix their salaries, and establish the
terms and conditions of their employment.

3. At least once a year, the Authority
shall submit to the Nevada League of Cities, the Nevada Association of
Counties, and the governing body of each city and county in its area of
operation a report of its activities for the preceding year and shall make
recommendations with reference to such additional legislation or other actions
as it deems necessary to carry out the purposes of NRS
315.961 to 315.99874, inclusive.

1. A commissioner or employee of the
Authority shall not voluntarily acquire any interest, direct or indirect,
except as a residential tenant, in any housing project, in any property
included or planned to be included in any housing project, in any contract or
proposed contract in connection with any housing project or in any mortgage
loan for residential housing made pursuant to the provisions of NRS 315.9983. Where the acquisition is not voluntary,
the commissioner or employee shall immediately disclose the interest in writing
to the Authority and the disclosure must be entered upon the minutes of the
Authority. Upon disclosure, the commissioner or employee shall not participate
in any action by the Authority involving the housing project, property,
contract or mortgage loan for residential housing. If any commissioner or
employee of the Authority previously owned or controlled an interest, direct or
indirect, in any housing project or in any property included or planned to be
included in any housing project, in any contract or proposed contract in
connection with any housing project or in any mortgage loan for residential
housing, he or she shall immediately disclose the interest in writing to the
Authority and the disclosure must be entered upon the minutes of the Authority.
Upon disclosure, the commissioner or employee shall not participate in any
action by the Authority involving the housing project, property, contract or
mortgage loan for residential housing.

2. A violation of any provision of this
section constitutes malfeasance in office.

3. This section is not applicable to the
acquisition of any interest in notes or bonds of the Authority or the execution
of agreements by financial institutions for the deposit or handling of money in
connection with a housing project or to act as trustee under any trust
indenture.

NRS 315.982Removal of commissioners; filling of vacancy in office.A commissioner of the Authority may be removed
from office, after a public hearing, by a majority vote of the other
commissioners for neglect of duty or malfeasance in office. A vacancy in office
must be filled for the remainder of the unexpired term by the entity or
entities which appointed the commissioner.

(a) Shall be deemed to be a public body corporate
and politic, and an instrumentality, local government and political subdivision
of the State, exercising public and essential governmental functions, and
having all the powers necessary or convenient to carry out the purposes and
provisions of NRS 315.961 to 315.99874, inclusive, but not the power to levy and
collect taxes or special assessments.

(b) Is not an agency, board, bureau, commission,
council, department, division, employee or institution of the State.

2. The Authority may:

(a) Sue and be sued.

(b) Have a seal.

(c) Have perpetual succession.

(d) Make and execute contracts and other
instruments necessary or convenient to the exercise of its powers.

(e) Deposit money it receives in any insured
state or national bank, insured credit union, insured savings and loan
association, or in the Local Government Pooled Long-Term Investment Account
created by NRS 355.165 or the Local
Government Pooled Investment Fund created by NRS
355.167.

(f) Adopt bylaws, rules and regulations to carry
into effect the powers and purposes of the Authority.

(g) Create a nonprofit organization which is
exempt from taxation pursuant to 26 U.S.C. § 501(c)(3) and which has as its
principal purpose the development of housing projects.

(h) Enter into agreements or other transactions
with, and accept grants from and cooperate with, any governmental agency or
other source in furtherance of the purposes of NRS
315.961 to 315.99874, inclusive.

(i) Enter into an agreement with a local
government in a county whose population is less than 100,000 to receive a loan
of money from the local government in accordance with NRS 354.6118.

(j) Acquire real or personal property or any
interest therein, by gift, purchase, foreclosure, deed in lieu of foreclosure,
lease, option or otherwise.

1. Except as otherwise provided in
subsection 2, operate in any area of the State which is not included within the
corporate limits of a city or town having a population of 150,000 or more.

2. Provide services in any area of the
State if the State Authority has contracted with the State or a local
government to provide those services in that area. As used in this subsection,
“services” does not include:

NRS 315.984Powers of Authority concerning housing projects and low-rent
housing; power of nonprofit organization concerning housing projects. 1. The Authority or a
nonprofit corporation created pursuant to paragraph (g) of subsection 2 of NRS 315.983 may, within its area of operation,
prepare, carry out and operate housing projects and provide for the
construction, reconstruction, improvement, extension, alteration or repair of
any such project or any part thereof.

2. The Authority may, within its area of
operation, administer programs to subsidize that portion of a tenant’s rental
payments which represents the difference between the payment required in the
lease and the amount paid under any program of the Federal Government.

3. The Authority may, within its area of
operation, determine where there is a need for additional low-rent housing for
persons of low and moderate income and where there is unsafe, insanitary or
overcrowded housing.

4. The Authority may, within its area of
operation, make studies and recommendations relating to the problems of
relieving the shortage of low-rent housing and of eliminating unsafe,
insanitary or overcrowded housing.

5. The Authority may, within its area of
operation, cooperate with the Federal Government, state agencies, local housing
authorities, counties, cities, towns and other political subdivisions of the
State in action taken in connection with such problems.

NRS 315.9845Determination of income.The
State Authority shall determine the amount of income which is necessary to
enable a person or family, without financial assistance, to live in decent,
safe and sanitary dwellings, without overcrowding.

NRS 315.988Powers of State Authority under Housing Authorities Law of 1947.

1. The State Authority may exercise all or
any part or combination of the powers granted to local housing authorities in NRS 315.450, 315.460 and 315.470 in connection with contracts, property,
investments and related matters.

2. The provisions of NRS 315.560 and 315.570
concerning powers of local housing authorities with respect to federal aid,
housing in rural areas and related matters apply to the State Authority in the
same manner and to the same extent as they apply to local authorities.

NRS 315.989State projects subject to local ordinances.All housing projects of the Authority shall be
subject to the planning, zoning, sanitary and building laws, ordinances and
regulations applicable to the locality in which the housing project is
situated.

(Added to NRS by 1973, 619)

NRS 315.990Payments in lieu of taxes.The
Authority shall agree with the governing body of each affected city, town,
county or other political subdivision to make such payments in lieu of taxes as
it finds consistent with the maintenance of the low-rent character of housing
projects or the achievement of the purposes of NRS
315.961 to 315.99874, inclusive.

NRS 315.991Acquisition, operation or disposition of property by public
agencies: Law applicable.No
provision of law with respect to the acquisition, operation or disposition of
property by other public agencies shall be applicable to the Authority.

1. Except as otherwise provided in
subsection 2, all real and personal property of the Authority, including money,
owned or held by it for the purposes of NRS 315.961
to 315.99874, inclusive, are exempt from levy and
sale by virtue of an execution or other judicial process. Execution or other
judicial process may not issue against such property, nor may any judgment
against the Authority be a charge or lien upon such property.

2. This section does not apply to or limit
the right of obligees to foreclose or otherwise enforce any mortgage, deed of
trust or other encumbrance of the Authority or the right of obligees to pursue
any remedies for the enforcement of any pledge or lien given by the Authority
on its rents, fees or revenues.

NRS 315.993Projects not to be constructed or operated for profit; fixing of
rentals or payments.

1. The Authority shall not construct or
operate any housing project for profit.

2. The Authority shall manage and operate
its housing projects in an efficient manner so as to enable it to fix the
rentals or payments for dwelling accommodations at low rates consistent with
its providing decent, safe and sanitary dwelling accommodations for persons of
low and moderate income.

3. The Authority shall fix the rentals or
payments for dwellings in its housing projects at no higher rates than are
necessary to produce revenue which, together with all other available money,
revenue, income and receipts of the Authority from whatever sources derived,
will be sufficient:

(a) To pay, as it becomes due, the principal and
interest on the bonds of the Authority.

(b) To create and maintain such reserves as may
be required to assure the payment of principal and interest as it becomes due
on its bonds.

(c) To meet the cost of, and to provide for,
maintaining and operating the housing projects, including necessary reserves
therefor and the cost of any insurance, and the administrative expenses of the
Authority.

(d) To make such payments in lieu of taxes as it
determines are consistent with the maintenance of the low-rent character of the
housing projects.

4. For the purposes of this section, a
housing project constructed or operated by the Authority that is eligible for
credit for low-income housing pursuant to 26 U.S.C. § 42 is not constructed or
operated for profit.

NRS 315.994Tenant selection.In
the operation or management of its housing projects, the Authority shall at all
times observe the following duties with respect to rentals and tenant
admissions:

1. It may rent or lease the dwelling
accommodations therein only to persons of low and moderate income.

2. It may rent or lease to a tenant
dwelling accommodations consisting of the number of rooms, but no greater
number, which it deems necessary to provide safe and sanitary accommodations to
the proposed occupants thereof, without overcrowding.

3. It shall not accept any person or
persons as tenants in any housing project if the person or persons who occupy
the dwelling accommodations have, at the time of admission, an aggregate annual
net income, less an exemption of $200 for each minor member of the family other
than the head of the family and his or her spouse, in excess of 7 times the
annual rental of the quarters to be furnished such person or persons; but the
Authority may agree to conditions as to tenant eligibility or preference
required by the Federal Government pursuant to federal law in any contract for
financial assistance with the Authority. In computing the rental for this
purpose of admitting tenants, there shall be included in the rental the average
annual cost, as determined by the Authority, to occupants of heat, water,
electricity, gas, cooking fuel, and other necessary services or facilities,
whether or not the charge for such services and facilities is included in the
rental.

NRS 315.995Remedies of Authority’s obligee: Effect of NRS
315.993 and 315.994.Nothing
contained in NRS 315.993 and 315.994
shall be construed as limiting the power of the Authority to vest in an obligee
the right, in the event of a default by the Authority, to take possession
thereof or cause the appointment of a receiver thereof, free from all the
restrictions imposed by such sections.

(Added to NRS by 1973, 620)

NRS 315.996Powers of state public bodies respecting housing projects.The provisions of NRS
315.550 apply to housing projects of the State Authority undertaken
pursuant to the provisions of NRS 315.961 to 315.99874, inclusive, in the same manner and to the
same extent as they apply to projects of local authorities.

NRS 315.9981Definitions.As
used in NRS 315.9981 to 315.99874,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 315.99815 to 315.99828,
inclusive, have the meanings ascribed to them in those sections.

NRS 315.99815“Lending institution” defined.“Lending
institution” means any bank or trust company, Federal National Mortgage
Association approved mortgage banker, national banking association, savings and
loan association or other financial institution or governmental agency of the
United States which customarily provides service or otherwise aids in the
financing of mortgages located in this State.

NRS 315.99818“Mortgage” defined.“Mortgage”
means a mortgage deed, deed of trust or other instrument which constitutes a
lien on real property in fee simple or on a leasehold under a lease whose
remaining term, at the time such mortgage is acquired, does not expire for at
least that number of years beyond the maturity date of the obligation secured
by such mortgage as is established by the State Authority as necessary to
protect its interest as mortgagee.

NRS 315.99825“Real property” defined.“Real
property” means all lands, including rights to space above the lands,
improvements and fixtures on the lands and property of any nature appurtenant
to or used in connection with the lands, and every estate, interest and right,
legal or equitable, in the lands, including terms of years and liens by way of
judgment, mortgage or otherwise and the indebtedness secured by such liens.

NRS 315.99828“Residential housing” defined.“Residential
housing” means one or more new or existing residential dwelling units financed
pursuant to the provisions of NRS 315.9981 to 315.99874, inclusive, for the primary purpose of
providing decent, safe and sanitary dwelling accommodations for persons of low
and moderate income in need of housing, including any buildings, manufactured
homes, mobile homes, mobile home parks, land, improvements, equipment,
facilities, other real or personal property, or other related nonhousing
facilities which are necessary, convenient or desirable in connection
therewith, and including, without limitation, streets, sewers, utilities,
parks, site preparation, landscaping and other nonhousing facilities such as
administrative, community, transportation, health, recreational, educational,
commercial, retail, welfare and public facilities which the State Authority determines
improve the quality of the residential living for persons of low and moderate
income.

NRS 315.9983Mortgages and loans: Generally.The
State Authority may make, undertake commitments to make and participate with
lending institutions in the making of mortgage loans to finance the
acquisition, construction, development, renewal, redevelopment, rehabilitation
or refinancing of residential housing, including, without limitation, single
family and multifamily housing, within this State.

NRS 315.99832Mortgages and loans: Security; repayment; interest.Any mortgage loan made by the State Authority
must be secured in such manner, be repaid in such period and bear interest at
such rate or rates as are determined by the State Authority.

1. Renegotiate, refinance or foreclose, or
contract for the foreclosure of, any mortgage in default;

2. Waive any default or consent to the
modification of the terms of any mortgage;

3. Commence any action to protect or
enforce any right conferred upon it by any law, mortgage, contract or other
agreement;

4. Bid for and purchase property upon
which it holds a mortgage at any foreclosure or at any other sale, or acquire
and take possession of any such property;

5. Operate, manage, lease, dispose of and
otherwise deal with such property in such manner as may be necessary to protect
the interest of the State Authority and the holders of its bonds, notes and
other obligations; and

6. Consent to any modification with
respect to rate of interest, time and payment of any installment of principal
or interest, security or any other term of any contract, mortgage, mortgage
loan, mortgage loan commitment, contract or agreement of any kind to which the
State Authority is a party, subject to any agreement with bondholders or
noteholders.

NRS 315.99836Mortgages and loans: Fees and charges.The
State Authority may charge and collect such fees and charges as the State
Authority may establish from time to time for its making of mortgage loans for
residential housing.

NRS 315.99838Mortgages and loans: Insurance.The
State Authority may procure insurance against any loss in connection with its
property and other assets, including mortgages and mortgage loans, in such
amounts and from such insurers as it deems desirable.

NRS 315.9984Findings necessary for financing.The
State Authority shall not finance any residential housing unless, before such
financing, the State Authority finds that:

1. There exists a shortage of decent, safe
and sanitary housing at rentals or prices which eligible families can afford
within the general housing market area as determined by the State Authority.

2. Private enterprise and investment have
been unable, without assistance, to provide an adequate supply of decent, safe
and sanitary housing in such housing market area at rentals or prices which
persons or families of low and moderate income can afford or to provide
sufficient mortgage financing for residential housing for occupancy by such
persons or families.

3. The proposed residential housing will
increase the supply or improve the quality of decent, safe and sanitary housing
for eligible families.

4. The residential housing to be developed
or assisted by the State Authority pursuant to the provisions of NRS 315.9981 to 315.99874,
inclusive, will be of public use and will provide a public benefit.

5. The estimates of the State Authority of
its revenues from the financing of the residential housing, together with all
subsidies, grants or other financial assistance from governmental agencies or
other entities to be received in connection with the residential housing, will
be sufficient to pay the amount estimated by the State Authority as necessary
for debt service on its notes and bonds to be issued for the financing of the
residential housing.

1. The State Authority may issue its
negotiable notes and bonds in such principal amount as the State Authority
determines to be necessary to provide sufficient money for achieving any of its
statutory purposes, including the payment of interest on notes and bonds of the
State Authority, establishment of bond reserve funds and other reserves to
secure the notes and bonds, and all other expenditures of the State Authority
necessary or convenient to carry out its statutory purposes and powers.

2. Subject to any agreements with holders
of notes or bonds, all notes and bonds issued by the State Authority are
special obligations of the State Authority payable out of any revenues, money
or other assets of the State Authority pledged thereto.

NRS 315.99844Notes, bonds and other obligations: Type; interest; sale.The bonds issued pursuant to NRS 315.99842 may be issued as serial bonds payable
in annual installments or as term bonds, or as a combination thereof. The notes
and bonds must bear interest at such a rate or rates, be in such denominations,
have such registration privileges, be executed in such a manner, be payable in
such a medium of payment, at such a place or places within or outside of the
State, and be subject to such terms of redemption as the State Authority
determines. The notes and bonds of the State Authority may be sold by the State
Authority at public or private sale at such a price or prices as the State
Authority determines except that no note, bond or other obligation issued by
the State Authority may be initially distributed to the public unless it has
received a rating in one of the three highest rating categories from a national
rating service.

NRS 315.99846Notes, bonds and other obligations: Pledges.The State Authority in issuing any notes or
bonds may contract with the holders thereof as to:

1. Pledging all or any part of the
revenues of the State Authority to secure the payment of the notes or bonds
subject to such agreements with noteholders or bondholders as may then exist.

2. Pledging all or any part of the assets
of the State Authority, including mortgages and obligations securing such
assets, to secure the payment of the notes or bonds subject to such agreements
with noteholders or bondholders as may then exist.

3. The use and disposition of the gross
income from mortgages owned by the State Authority and the payment of principal
of mortgages owned by the State Authority.

4. The setting aside of reserves or
sinking funds and the regulation and disposition thereof.

5. Limitations on the purpose to which the
proceeds of sale of notes or bonds may be applied and pledging such proceeds to
secure the payment of the notes or bonds or of any issue thereof.

6. Limitations on the issuance of
additional notes or bonds, the terms upon which additional notes or bonds may
be issued and secured, and the refunding of outstanding or other notes or
bonds.

7. The procedure, if any, by which the
terms of any contract with noteholders or bondholders may be amended or
abrogated, the amount of notes or bonds the holders of which must consent
thereto and the manner in which such consent may be given.

8. Limitations on the amount of money to
be expended by the State Authority for operating expenses of the State
Authority.

9. Vesting in a trustee or trustees such
property, rights, powers and duties in trust as the State Authority may
determine, which may include any or all of the rights, powers and duties of the
trustee appointed by the bondholders pursuant to NRS
315.9981 to 315.99874, inclusive, and
limiting or abrogating the right of the bondholders to appoint a trustee under
this act or limiting the rights, powers and duties of such trustee.

10. Defining the acts or omissions which
constitute a default in the obligations and duties of the State Authority to
the holders of the notes or bonds and providing for the rights and remedies of
the holders of the notes or bonds in case of such default, including, as a
matter of right, the appointment of a receiver, but such rights and remedies
must not be inconsistent with the general laws of this State and the other
provisions of NRS 315.9981 to 315.99874, inclusive.

11. Any other matters, of like or
different character, which in any way affect the security or protection of the
holders of the notes or bonds.

Ê Any pledge
made by the State Authority is valid and binding from the time the pledge is
made. The revenues, money or property so pledged and thereafter received by the
State Authority are immediately subject to the lien of such pledge without any
physical delivery thereof or further act, and the lien of any such pledge is
valid and binding as against all persons having claims of any kind in tort,
contract or otherwise against the State Authority, whether or not such persons
have notice thereof. Neither the proceedings of the State Authority relating to
the bonds or notes nor any other instrument by which a pledge is created need
be recorded.

NRS 315.99848Notes, bonds and other obligations: Trust indentures.In the discretion of the State Authority,
bonds issued by the State Authority may be secured by a trust indenture or
trust indentures by and between the State Authority and a corporate trustee,
which may be any trust company or bank having the power of a trust company
within or outside this State. Such trust indenture may contain such provisions
for protecting and enforcing the rights and remedies of the bondholders as may
be reasonable and proper and not in violation of law, including covenants
setting forth the duties of the State Authority in relation to the exercise of
its statutory powers and the custody, safeguarding and application of all
money. The State Authority may provide by such trust indenture for the payment
of the proceeds of the bonds and the revenues to the trustee under such trust
indenture or other depository, and for the method of disbursement thereof, with
such safeguards and restrictions as the State Authority may determine. All
expenses incurred in carrying out such trust indenture may be treated as part
of the operating expenses of the State Authority. Such trust indenture may
limit or abrogate the right of the holders of any bonds, notes or other
obligations of the State Authority to appoint a trustee under NRS 315.9981 to 315.99874,
inclusive, or limit the rights, powers and duties of such trustee.

NRS 315.9985Notes, bonds and other obligations: Guarantees of payment.The State Authority may procure or agree to
the procurement of insurance or guarantees from any governmental agency or from
any private insurance company, of the payment of any bonds or notes or any
other evidences of indebtedness thereof issued by the State Authority or by any
lending institution, and may pay premiums on such insurance.

NRS 315.99852Notes, bonds and other obligations: Redemption; remarketing or
refunding.

1. The State Authority, subject to such
agreements with noteholders or bondholders as may then exist, may, out of any
money available therefor, purchase its notes or bonds to retire and cancel
them. The price must not exceed:

(a) The redemption price then applicable plus
accrued interest to the next interest payment thereon if the notes or bonds are
then redeemable; or

(b) The redemption price applicable on the first
date after the purchase upon which the notes or bonds become subject to
redemption plus accrued interest to that date if the notes or bonds are not
redeemable.

2. The State Authority may, in connection
with any remarketing or refunding of its notes or bonds or for any of its
purposes, acquire, or cause to be acquired, its notes or bonds without retiring
and cancelling them.

NRS 315.99854Notes, bonds and other obligations: Provision for or requirement
of means of assuring repayment; payment of associated fees and costs.The State Authority may:

1. Provide that any bonds or notes issued
by the State Authority be insured or be secured by surety bonds, letters of
credit not issued by the State Authority, guaranties or other means of assuring
repayment of such bonds or notes.

2. Require that any loans, including a
mortgage loan, made or purchased by the State Authority be insured or be
secured by surety bonds, letters of credit not issued by the State Authority,
guaranties or other means of assuring repayment of such loans.

3. Pay the fees, charges, premiums and any
other costs associated with obtaining and maintaining insurance, or other means
of assuring repayment, from any available money of the State Authority,
including premiums, fees and charges assessed against sponsors, lending
institutions or other participants or beneficiaries of the programs of the
State Authority.

NRS 315.99856Notes, bonds and other obligations: Waiver of exemption of
interest from federal income taxation; issuance of obligations not exempt from
taxation.The State Authority may:

1. Waive, by such means as the State
Authority deems appropriate, any exemption from federal income taxation of
interest on the bonds, notes or other obligations of the State Authority
provided by 26 U.S.C. §§ 141 to 149, inclusive, and related portions of the
Internal Revenue Code or any succeeding code or other federal statute providing
a similar exemption; or

2. Issue notes, bonds or other
obligations, the interest on which is not exempt from federal income taxation
or excluded from gross revenue for the purpose of federal income taxation, if
necessary to carry out the purposes of NRS 315.961
to 315.99874, inclusive.

1. The State Authority may issue refunding
obligations to refund any obligations then outstanding which have been issued
under the provisions of NRS 315.9981 to 315.99874, inclusive, including the payment of any
redemption premium thereon and any interest accrued or to accrue to the date of
redemption of the obligations and for any statutory purpose of the State
Authority. The issuance of the obligations, the maturities and other details
thereof, the rights of the holders thereof, and the rights, duties and
obligations of the State Authority in respect to them are governed by the
provisions of NRS 315.9981 to 315.99874, inclusive, which relate to the issuance
of original obligations insofar as appropriate.

2. Refunding obligations issued as
provided in this section may be sold or exchanged for outstanding obligations
issued under NRS 315.9981 to 315.99874, inclusive, and, if they are sold, the
proceeds thereof may be applied, in addition to any other authorized purposes,
to the purchase, redemption or payment of the outstanding obligations. Pending
the application of the proceeds of the refunding obligations, with any other
available funds, to the purpose for which they are issued, the proceeds may be
invested in direct obligations of, or obligations the principal of and the
interest on which are unconditionally guaranteed by the United States of
America, or obligations of any agency or instrumentality of the United States
of America, which mature or which are subject to redemption by the holders
thereof, at the option of such holders, not later than the respective dates
when the proceeds, together with the interest accruing thereon, will be
required for the purposes intended.

NRS 315.9986Notes, bonds and other obligations: Establishment, use and
requirements for bond reserve funds.

1. The State Authority may establish one
or more bond reserve funds, and shall pay into each such bond reserve fund:

(a) Any money appropriated by the Legislature for
the purpose of the fund;

(b) Any proceeds of sale of notes or bonds to the
extent provided in connection with the issuance thereof; and

(c) Any other money which may be available to the
State Authority for the purpose of the fund from any other source or sources.

Ê All money
held in any bond reserve fund, except as otherwise expressly provided in NRS 315.9981 to 315.99874,
inclusive, must be used, as required, solely for the payment of the principal
of bonds secured in whole or in part by the fund or of the sinking fund
payments with respect to such bonds, the purchase or redemption of such bonds,
the payment of interest on such bonds or the payment of any redemption premium
required to be paid when the bonds are redeemed before maturity.

2. Money in such a fund must not be
withdrawn from the fund at any time in an amount that would reduce the amount
of the fund below the requirement established for that fund, except to pay when
due, with respect to bonds secured in whole or in part by that fund, principal,
interest, redemption premiums and sinking fund payments for the payment of
which other money of the State Authority is not available.

NRS 315.99862Notes, bonds and other obligations: Limitations on bond reserve
funds.The State Authority shall
not at any time pursuant to NRS 315.9981 to 315.99874, inclusive, issue bonds, secured in whole
or in part by a bond reserve fund, if upon the issuance of those bonds, the
amount in that bond reserve fund will be less than the bond reserve fund
requirement for that fund, unless the State Authority at the time of issuance
of those bonds deposits in that fund from the proceeds of the bonds issued, or
from other sources, an amount which, together with the amount then in that
fund, will not be less than the bond reserve fund requirement for that fund.
The bond reserve fund requirement, as of any particular date of computation, is
an amount of money, specified in the proceedings of the State Authority
authorizing the bonds with respect to which the fund is established, necessary
to provide adequate reserves for debt service on the bonds.

NRS 315.99864Notes, bonds and other obligations: Purpose of bond reserve fund
requirements.The provision of
bond reserve fund requirements is designed to assure the continued operation
and solvency of the State Authority for the carrying out of its statutory
purposes.

NRS 315.99866Notes, bonds and other obligations: Remedies of bondholders and
noteholders.

1. If the State Authority defaults in the
payment of principal of or interest on any bonds or notes issued under NRS 315.9981 to 315.99874,
inclusive, after it is due, whether at maturity or upon call for redemption,
and such default continues for a period of 30 days, or if the State Authority
fails or refuses to comply with the provisions of NRS
315.9981 to 315.99874, inclusive, or defaults
in any agreement made with the holders of an issue of its bonds or notes, the
holders of 25 percent in aggregate principal amount of the bonds or notes of
such issue then outstanding, by instrument or instruments filed in the Office
of the Secretary of State and proved or acknowledged in the same manner as a
deed to be recorded, may appoint a trustee to represent the holders of such
bonds or notes for the purposes provided in this section.

2. The trustee may, and upon written
request of the holders of 25 percent in principal amount of such bonds or notes
then outstanding shall, in his, her or its own name:

(a) Enforce the right of the bondholders or
noteholders to require the State Authority to collect interest and amortization
payments on the mortgages held by it adequate to carry out any agreement as to,
or pledge of, such interest and amortization payments, and to require the State
Authority to carry out any other agreements with the holders of such bonds or
notes and to perform its duties under NRS 315.9981
to 315.99874, inclusive.

(b) Enforce the right of the bondholders or
noteholders to collect and enforce the payment of principal of and interest due
or becoming due on loans to lending institutions and collect and enforce any
rights in respect to collateral securing such loans or sell such collateral, so
as to carry out any contract as to, or pledge of revenues, and to require the
State Authority to carry out any contract as to, or pledge of revenues, and to
require the State Authority to perform its duties under NRS
315.9981 to 315.99874, inclusive.

(c) Bring suit upon all or any part of such bonds
or notes.

(d) By civil action, require the State Authority
to account as if it were the trustee of an express trust for the holders of
such bonds or notes.

(e) By civil action, enjoin any acts or things
which may be unlawful or in violation of the rights of the holders of such
bonds or notes.

(f) Declare all such bonds or notes due, and if
all defaults are made good then with the consent of the holders of 25 percent
of the principal amount of such bonds or notes then outstanding, to annul such
declaration and its consequences.

(g) Enforce any other right of the bondholders or
noteholders conferred by law or by the proceedings of the State Authority
authorizing the issuance of the bonds or notes.

3. The trustee shall, in addition to the
powers listed in subsection 2, have all the powers necessary or appropriate for
the exercise of any functions specifically set forth in this section or
incident to the general representation of bondholders or noteholders in the
enforcement and protection of their rights.

4. Before declaring the principal of bonds
or notes due, the trustee shall give 30 days’ notice in writing to the
Governor, to the State Authority and to the Attorney General of this State.

5. The District Court of the First
Judicial District has jurisdiction of any suit, action or proceeding by the
trustee on behalf of bondholders or noteholders.

NRS 315.99868Notes, bonds and other obligations: Pledge against impairment of
holders’ rights and remedies; credit of State or political subdivision not
pledged.

1. The State of Nevada hereby pledges to
and agrees with the holders of any notes or bonds issued under NRS 315.9981 to 315.99874,
inclusive, that the State will not limit or alter the rights vested in the
State Authority by NRS 315.9981 to 315.99874, inclusive, to fulfill the terms of any
agreements made with such holders or in any way impair the rights and remedies
of such holders until such notes and bonds, together with the interest thereon,
with interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceeding by or on behalf of such
holders, are fully met and discharged. The State Authority may include this
pledge and agreement of the State in any agreement with the holders of such
notes or bonds.

2. Obligations issued under the provisions
of NRS 315.9981 to 315.99874,
inclusive, including letters of credit issued by the State Authority, do not
constitute a debt, liability or obligation of this State or of any political
subdivision thereof, or a pledge of the faith and credit of this State or of
any political subdivision thereof, but are payable solely from the revenues or
assets of the State Authority. Neither the commissioners of the State Authority
nor any person executing the bonds is liable personally on the bonds by reason
of the issuance thereof. Each obligation, including a letter of credit, issued
under NRS 315.9981 to 315.99874,
inclusive, must contain on the face thereof a statement to the effect that the
State Authority is not obligated to pay the obligation or the interest thereon
except from the revenues or assets pledged therefor and that neither the faith
and credit nor the taxing power of this State or of any political subdivision
thereof is pledged to the payment of the principal of or the interest on the
obligation. The bonds do not constitute an indebtedness within the meaning of
any constitutional or statutory debt limitation or restriction.

NRS 315.9987Notes, bonds and other obligations: Submission to and
certification by Attorney General.The
State Authority may submit to the Attorney General of the State any bonds to be
issued under NRS 315.9981 to 315.99874, inclusive, after all proceedings for the
issuance of such bonds have been taken. Upon the submission of such proceedings
to the Attorney General, the Attorney General shall examine into and pass upon
the validity of such bonds and the regularity of all proceedings in connection
therewith. If the proceedings conform to the provisions of NRS 315.9981 to 315.99874,
inclusive, and are otherwise regular in form, and if such bonds when delivered
and paid for will constitute binding and legal obligations of the State
Authority enforceable according to the terms thereof, the Attorney General
shall certify in substance upon the back of each of the bonds that it is issued
in accordance with the Constitution and laws of the State of Nevada.

1. The notes and bonds of the State
Authority are legal investments in which all public officers and public bodies
of the State, its political subdivisions, all municipalities and municipal
subdivisions, all insurance companies and associations and other persons
carrying on an insurance business, all banks, savings and loan associations and
trust companies, all administrators, guardians, executors, trustees and other
fiduciaries, and all other persons who are authorized to invest in bonds or in
other obligations of this State, may properly and legally invest funds,
including capital, in their control or belonging to them. The notes and bonds
are securities which may properly and legally be deposited with and received by
all public officers and public bodies of the State or any agency or political
subdivision of the State and all municipalities and public corporations for any
purpose for which the deposit of bonds or other obligations of this State is
authorized by law and may be used as collateral to secure any deposit of public
money.

2. The notes and bonds of the State
Authority are securities within the meaning of the Uniform Commercial
Code—Investment Securities.

NRS 315.99874Notes, bonds and other obligations: Signatures of commissioners
and officers.If any of the
commissioners or officers of the State Authority whose signatures appear on any
bonds or coupons cease to be such commissioners or officers before the delivery
of such bonds, such signatures shall, nevertheless, be valid and sufficient for
all purposes, the same as if such commissioners or officers had remained in
office until such delivery.